Peru’s Q1 2024 GDP Rises 1.4% on Strong Public Investment

Peru’s economy shows signs of recovery in the first quarter of 2024 after facing challenges in the previous year. The Central Reserve Bank (BCR) reported a 1.4% year-on-year increase in gross domestic product, a positive change after four consecutive quarters of decline. 

Source: BCR

In its weekly report, the BCR attributed this growth to the recovery of domestic demand, which grew by 2.1% year-on-year, mainly driven by private spending and accelerated public investment.

Private consumption accelerated its growth rate from 0.2% to 1.2% between the fourth quarter of 2023 and the first quarter of 2024, associated with the recovery of real incomes. 

Private investment grew by 0.3% year-on-year, reversing the trend of six consecutive quarters of decline. This increase was observed in both the mining and non-mining non-residential sectors, coinciding with improved business confidence, lower corporate interest rates, and better weather conditions.

Public consumption grew by 3.2% year-on-year in the first quarter of 2024, although at a slower pace compared to the previous quarter due to lower disbursements by the national government and regional governments. 

Public investment, however, recorded a significant growth rate of 39.9%, supported by higher disbursements at all levels of government, particularly by regional and local authorities.

Information for this story was found via BCR, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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